For Release: October 16, 2006
U.S. Commodity Futures Trading Commission’s Office of International Affairs Presents International Symposium and Training Program on Regulation of Derivative Products, Markets, and Financial Intermediaries
Chicago, Illinois – The U.S. Commodity Futures Trading Commission’s (CFTC) Office of International Affairs, in conjunction with the Federal Reserve Bank of Chicago, is hosting an annual meeting of international regulatory and market authorities to discuss issues relevant to the international derivatives markets. The meetings – to be held from October 16 through 20 – at the Federal Reserve Bank, are expected to draw over 70 participants and over 40 presenters and panelists from 27 countries, including: Australia, Canada, Columbia, Czech Republic, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, Jordan, Korea, Mexico, the Netherlands, Nigeria, Pakistan, Singapore, Slovenia, Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United Kingdom, and Uruguay. This group represents more than 40 different markets and regulators, and also includes participants from the Chicago Federal Reserve Bank.
The meetings this week will be followed on October 23, 2006, by a separate intensive technical session to be held at the CFTC’s Chicago Regional Office, covering the CFTC’s regulatory programs.
Commenting on the program, CFTC Chairman Reuben Jeffery III said:
“The CFTC welcomes the opportunity to host representatives from regulatory and market authorities from a diverse range of countries to share our experiences and exchange ideas concerning how derivatives regulators can better meet new risks and challenges. In today’s global marketplace, it is critical that regulators and market authorities work together to oversee the world’s markets. This training program will help facilitate cooperation and essential dialogue so that we may continue to ensure customer and market protections.”
CFTC Commissioners Walter Lukken and Michael Dunn, along with senior CFTC staff, executives from U.S. exchanges, the National Futures Association, and senior representatives from several foreign regulatory agencies and exchanges will engage in discussions and give presentations during the program that will address a wide variety of regulatory topics. Several current topics will be addressed from both the regulatory and the industry perspective. Among the topics and questions to be discussed are:
• At what point should a foreign exchange that offers direct access to domestic customers become subject to the regulatory scheme of the domestic regulator?
• What are the costs and benefits of exchange mergers?
• What is the potential impact of exchange mergers on each regulator’s domestic supervisory and enforcement responsibilities?
• To what extent should cooperation between statutory regulators and self-regulatory organizations exist in order to allow for greater efficiencies, wider regulatory coverage, and a reduction in duplicative or misdirected efforts?
• How have regulators addressed concerns raised by exchanges evolving from member-owned to profit-making companies?
• How should multiple regulators and multiple market authorities and intermediaries work together to find practical solutions during a market crisis?
• What are the investigative techniques and tools used by the CFTC in cross-border investigations?
R. David Gary
Last Updated: March 18, 2007